fraudulent accounting practices that led to the collapse of Worldcom. Other objectives of this paper will be to demonstrate how these activities were able to go undetected. Also‚ what motives drove the individuals involved to commit these acts. And finally the ethical accounting issues involved. Worldcom got its start as a small discount long distance provider in Mississippi. Founded by Bernard Ebbers and a number of others the idea for Worldcom was simple‚ buy long distance services from larger companies
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington‚ D.C. 20549 FORM 20-F (Mark One) ‘ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR È ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended 31 March 2012 OR ‘ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ‘ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
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Enron and WorldCom FIN/486 December 22‚ 2014 Enron and WorldCom In 1998‚ Waste Management executives acknowledged earnings misstatements of approximately $1.7 billion. With the help of the Arthur Anderson accounting firm‚ Waste Management shareholders lost more than $6 billion dollars (CNN‚ 2001). The Waste Management corruption ushered in a series of corporate scandals into the new millennium. Enron and WorldCom were only two of many ethical and accounting violations that prompted new legislation
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Summary Accounting Issues: Fraudulent Accounting Practices • $11 Billion Accounting Fraud over 3 years (1999 – 2002) by understatement of operating expenses of $7B through improper release of accruals and improper capitalization of operating expenses • management promoted culture fixed on the numbers • board of directors’ failure to scrutinize billion-dollar acquisitions • excessive loans to executives in order protect stock prices Financial Overview of WorldCom (in Billions) Financial
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Autonomy is the ethical principle that competent persons should be allowed self-determination unless proven otherwise incompetent. The decision to prove someone as incompetent is easily determined if the patient is unconscious or an infant (VHE‚ pg 107). But what if the ’child’ is 12 years old and has expressed wisdom beyond her years? As a society we determine that a persons below the age of 18 are lacking sufficient autonomy for a range of publically significant decisions unless proven otherwise
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Case AnalysisAngela RosadoProfessional & Ethical Issues in Forensic PsychOctober 15‚ 2014Mary McGreevyCase Analysis “In Vignette 3‚ an inmate is incarcerated due to a history of violent behavior(s). While in prison the inmate was known as being a “model prisoner”. Now that the inmate is scheduled for a parole hearing‚ the warden believes the inmate possesses the propensity to commit a violent crime if released‚ and “requests that a psychologists/psychiatrist evaluate the inmate using psychological
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M1. Case Study Assignment: Fraud at WorldCom 1. Who were the major characters in WorldCom? There are a couple of major characters that played their roles in the downfall of WorldCom. Mr. Bernard J. (Bernie) Ebbers‚ one of the founders of the original small long-distance carrier‚ was asked to take charge of the company during its early struggles. It was under his tenure that WorldCom began its expanding pursuits and aggressive acquisitions. Although Mr. Ebbers was he head of the company‚ their CFO
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Ayusarita Satriani 311368 – IUP BUSINESS UGM Financial Management ENRON Resources: http://en.wikipedia.org/wiki/Enron_scandal ; http://news.bbc.co.uk/2/hi/business/1780075.stm; http://finance.laws.com/enron-scandal-summary Enron is an energy company that successfully grew from nowhere to be America’s seventh largest company‚ which has 21‚000 staff in more than 40 countries in 15 years. It was one of the world’s leading electricity‚ natural gas‚ communications‚ and pulp and paper companies
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has been on dialysis three times a week for 15 years but has lately been missing his dialysis appointments and calling the clinic the next day calling to be dialyzed as he is having respiratory complications. This issue is becoming more prominent and has developed into an ethical issue relevant to the practice of those working in the clinic‚ particularly the nurses. In particular‚ by having George call for a last
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WorldCom Failure in relation to its Organizational Behavior LDR/531 - Organizational Leadership October 7‚ 2010 WorldCom Failure in relation to its Organizational Behavior INTRODUCTION Year 2002 saw an unprecedented number of corporate scandals: Enron‚ Tyco‚ Global Crossing‚ etc. In many ways‚ WorldCom is just another case of failed corporate governance‚ accounting abuses‚ and outright greed. Many people may question if there is a secret to operating a successful business in modern times.
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